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Study: Real estate investment volume to exceed 1.1 billion euros in 2020
The volume of real estate investments will exceed 1.1 billion euros this year, when transactions of over 700 million euros have already been signed or are in due diligence process, according to the consulting company JLL.
“That thing proves the investors' growing interest in the local real estate market, even though last year the transaction volume as only 683 million euros, below initial estimates,” JLL shows.
The volume of transactions recorded last year was influenced by long analysis processes on projects, buyers being very attentive to investments they make in Romania.
The investors' increased appetite is also seen in the evolution of yields in the last 12 months, which dropped by 25 basic points on the office and industrial segments, to 7% and 8% respectively. The tendency will continue this year too and is in line with what is happening in the region.
Considering the on-going transactions, JLL representatives foresee in 2020 Bucharest's powerful return, which may attracts over 80% of the total investment volume, compared to 48% last year. Secondary towns, which in 2019 became more interesting for investors, will drop as share as there is a lower number of projects available at present.
“In 2020 office buildings will represent the most liquid class of real estate active stock. Moreover, we expect an increase of the share in overall transactions to 80% from 60% last year. The hotel section becomes more and more active and we expect new transactions in 2020 in the context in which 11 hotel sales were concluded in the last 3 years, both in Bucharest and in secondary towns,” analysts show.